Answer:
Check the difference between each two / each pair if buyer and seller.
(note that the surplus could be split between them, making it effectively a win-win-scenario. but it could also be extremely good for one of them, yet just at the limit for the other one)
a) $11
b) $8
c) $6
d) add every max. buying price up ($64) and do the same with all the minimum selling prices ($33)
the difference between these two is your answer: $31
Answer:
Explanation:
a) as the rate of return on fine art falls, allocation will shift towards saving in bank as these two options are substitutes
b) as the allocation shifts towards saving in bank, national savings rate increases
Answer: True
Explanation: I got it right. Have a blessed day!!! :)
Answer:
Year _______Risk Premium (%)
2011 _______ 0.95
2012_______ 16.01
2013_______ 32.99
2014_______ 12.66
2015_______ 0.46
Explanation:
The Risk premium is the premium paid to an investor for investing in a risky stock/security/asset over the risk-free rate in the market.
A Risk-free rate is a rate that is offered by a security having minimum or no risk at all e.g. Rate on Government securities are considered as the risk-free rate because these securities are backed by the government.
T bills or Treasury bills are also considered as risk-free investments.
Use following formula to calculate the Risk premium
Ris premium = Stock Market Return - T-Bill Return
Use above formula Calculate the risk premium as below
Year _ Stock Market Return (%) __T-Bill Return (%)__ Risk Premium (%)
2011 _______ 0.98 _______________0.03 _________ 0.95
2012_______ 16.06_______________0.05 _________ 16.01
2013_______ 33.06_______________0.07 _________ 32.99
2014_______ 12.71 _______________ 0.05 _________ 12.66
2015_______ 0.67 _______________ 0.21 __________ 0.46